US regulators call for Microsoft’s Call of Duty takeover to be blocked

US regulators have called for Microsoft’s £55bn acquisition of Call of Duty maker Activision Blizzard to be blocked – following the UK’s footsteps.

The US Federal Trade Commission (FTC) said the deal, which would be the largest in video game industry history, “could significantly reduce competition” and should be stopped.

The ruling came after Britain’s Competition and Markets Authority (CMA) blocked the deal in April over fears it would stunt growth in the sector.

Activision owns games like World Of Warcraft and Candy Crush Saga, as well as Call of Duty.

But while the CMA’s decision was greeted with outbursts of anger at Microsoft, the US company was much more dovish in its response to the FTC.

“We welcome the opportunity to take our case to federal court,” said Microsoft president Brad Smith.

Simon French, head of research at Panmure Gordon, accused the company of ‘hypocrisy – pure and simple’, adding: ‘Microsoft’s measured response to the US regulator is in stark contrast to its sniping at the UK equivalent.

“It gives the impression that these companies thought they were above competition law in the UK.”

The case has divided regulators, with the European Union deciding to greenlight the deal a few weeks after the CMA blocked it.

When the CMA announced it would oppose the deal, Smith called the move “bad for Britain”.

“The European Union is a more attractive place to start a business than the UK,” Smith said at the time.

But U.S. regulators have followed suit, and a lawsuit is scheduled for August in which the FTC will argue that the deal would give Microsoft the ability and greater incentive to withhold or downgrade Activision’s content in a way that the competition significantly.